The company's earnings per share were 33 cents in the second quarter, compared with the 51 cents that analysts expected on average, according to the Bloomberg news agency.
Revenue increased by 26 percent compared with the same period last year, to $28.2 billion. This was better than the expected $26.3 billion.
Revenue from car sales increased by 23 percent to $20.5 billion.
Despite an increase in the number of cars delivered, the business is being pressured by a lower average selling price for vehicles. Increased investments in AI, research and development are weighing on profitability.
Tesla's stock fell around 2-3 percent in after-hours trading.
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